Our Country’s Medicine Manufacturing Industry Marketing And Industrial Performance

In China, competitive behavior in industries of pharmaceuticals,alcohol and personal care products is very fierce,the upgrade of computer,cellphone,camera and other electronic products are more and more frequent. Of course, moderate marketing competition is beneficial for the enterprises to form product differentiation,establish market entry barrier,improve their performance. However, there are no literatures studying what’s the moderate marketing competition, if there is excessive marketing in some industries in China, what’s the influence of excessive marketing on enterprises performance, what’s the threshold of optimal marketing outlays. Hence, studying the relationship between strength of industry marketing behavior and enterprises performance has vital practical significance for preventing excessive marketing in some industries, preventing waste of resources, achieving optimal combination of marketing strength and enterprises performance. In this thesis, we use various documentary research methods, analytical methods, and relevant economic theories to analyze relationships between marketing competition and enterprises performance, then draw a final conclusion through analysis of the features and reasons of excessive enterprise marketing in pharmaceuticals industry, offer a proposal on this analysis above.This thesis’ s content and structure is consist of six parts. The first part is introduction, mainly introduce the research’s background, such as the high marketing outlays, low R&D expenditure and low profitability in pharmaceuticals industry, the research thoughts and methods, and summarize the disadvantages and follow-up work of this thesis. The second part is literature review, mainly introduce the relevant domestic and overseas literatures on factors influencing enterprise performance, summarize the research achievement in this field, and expound the research purposes of this thesis. The third part is the theoretical basis of research, has a game analysis of marketing competition behavior in oligopolistic market, and a theoretical analysis of the research combining practical situation. Because marketing behavior has various influence on market structure and enterprises performance,in order to have a effective game analysis on enterprises marketing competition in oligopolistic market,we use game analysis on enterprises advertisement competition in oligopolistic market for reference,proceed the game analysis on enterprises marketing competition from the perspective of product differentiation,divide the game analysis into the game analysis when the products are homogeneous and the game analysis when the products are different,when the products are different,the game analysis is proceeded from the perspective that whether the information is complete. Finally we have individual analysis on pharmaceuticals industry synthesizing the particular character of Chinese pharmaceuticals industry in reality. The fourth part is research design, including choosing research data,setting assumption of relevant problem, choosing relevant variables and establishing the model. The fifth part is to have a analysis on empirical regression result on the basis of the third part and the fourth part, the analysis includes variable descriptive statistics,correlation coefficient analysis,regression analysis,stability test and endogeneity test. The stability test and the model established after the correction of stability test estimate the optimal marketing strength and optimal enterprises performance. Stability test takes the next three methods: First, enterprises profitability is indicated by new indexes, the enterprise performance is indicated by enterprise business profitability instead of the ROA. Second, we use new measurement approaches to regress,regress the statistics in model through PCSE regression, result though the test above has no substantial changes. Third, we take new control variables such as revenue growth rate and assets liability rate into the model to regress again. However the stability test uses traditional Hausman test. The sixth part is the thesis’ s conclusion and revelation, illustrates the problems on marketing behavior in Chinese pharmaceuticals industry, emphasizes moderate marketing is important and necessary for optimizing enterprises performance,comes up with suggestion on correct marketing strategy for Chinese pharmaceuticals industry.This thesis has empirical study with panel data on how the marketing expenditures influence enterprises performance, chooses original samples of 109 listed companies in pharmaceuticals industry in Shanghai and Shenzhen Stock Exchange from 2010 to 2013. When having empirical analysis on relationship between marketing expenditures and enterprises performance, we find that ratio of expenses to sales of pharmaceuticals enterprises has positive correlation with enterprises performance, ratio of expenses to sales squared has negative correlation with enterprises performance, that is to say, in the beginning of marketing, enterprises profitability increases with the increasing of marketing expenditures, when it increases to a certain value, the enterprises marketing expenditures arrive the optimal marketing expenditures, after the optimal value, enterprises business profitability decreases with the increasing of marketing expenditures. Meanwhile, this thesis estimates marketing expenditures strength threshold and optimal enterprises performance of listed company in pharmaceuticals industry with empirical results.